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Economics is one of the most demanded subjects nowadays. Students get motivated to choose this subject in their higher secondary level because of their career scope in future. Students opting for economics in higher studies gets an opportunity in banks, financial institutions, etc. where they can built their own future.

But on the same hand it is not easy to deal with this subject easily. It consist lot of terms and concepts which becomes difficult to handle.

Thus students need AD-AS model homework help from a reputed homework help company from best of teachers.

What is economics?

Economics is a kind of social science that shows the working of the whole economy in two types of concept.

It helps to solve the three basic problems of the economy such as:

  1. What to produce?
  2. How to produce?
  3. For whom to produce?

These some of the basic concepts of economics. One such concept is demand and supply, AD-AS model, IS-Lm model, etc. All such model plays a very important role in economics as well as in the economy.

To deal with these difficult concepts it is useful for students to take up AD-AS model assignment help.

What is AD-AS model?

AD stands for aggregate demand and AS stands for aggregate supply. This model shows aggregate demand and aggregate supply model. This model shows the relationship between price level and output. AD and AS is derived from equilibrium of the IS-LM curve which shows the relationship between interest, money supply and output. In case you need such detailed explanation contact us for AD-AS model homework help.

Shift in AD AND AS curve

The aggregate demand and supply curves also shifts downward and downward depending on the following factors.

Reasons for shift in aggregate demand

  • When there is an increase in consumer spending.
  • Increase in investment spending.
  • Increase in government spending.
  • Increase in transfer payment.
  • Increase in exports and decrease in imports.
  • Increase in money supply causes rightward shift in LM curve.

Reasons for shift in aggregate supply

  • Decrease or increase in wage rate.
  • Increase or decrease in capital stock.
  • Level of technology.
  • Increase or decrease in population.

For example if there is an increase in government spending it will shift the IS curve outward which in turn will shift the IS curve outward. Similarly opposite changes will take place if there is a decrease in government spending.

These are the reasons which cause the shift in the AD and AS curve in the diagrammatical explanation. Thus the complexity of the changes makes it is necessary for the students to understand the concept from AD-AS model assignment help.

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